Small firms confident

Small firms have welcomed the strength in the UK job market.

The latest jobs numbers show unemployment falling to 1.64 million, down by 52,000 from the previous period, with the unemployment rate continuing at 4.9%.

Wage growth has risen slightly – with average earnings, including bonuses, up by 2.4% .

The figures are the first to be published which include the effect from the introduction of the National Living Wage.

The continuing strong performance of the labour market suggests that businesses have, for now, managed to absorb the cost of the new wage.

Mike Cherry, national chairman of the Federation of Small Businesses, said: “The strength of the UK job market statistics shows the determination of our small businesses to grow.

“Since the 2009 downturn small firms have been at the forefront of creating new opportunities and these figures proves they are continuing to do so.

“Looking forward, we know the EU referendum brought new uncertainty and this could impact future jobs growth.”